BEST PRACTICES FOR INTEGRATED SCHEDULING

Agenda

Introduction

Background

Best Practices for Integrated Scheduling

Next EPC Roundtable Topic – May 2014

Introduction

Introduction

Scott Diehl, P.ENG, M.ENG, PMP

Executive Associate at Pathfinder Project Consultants Canada. Provides customized PM training, independent project reviews, facilitation.

Active member in PMI, AACE, CII, COAA

28 years Industry experience in Project Management to improve outcomes through project cost and schedule control, and effective project team management

Diverse experience: gas and oil production/processing, electric generation and transmission, gas transmission pipelines, water and wastewater utilities, alternative energy sector, mining and oil sands, pulp and paper, food & beverage production

Education:

Project Management Professional (PMP) Certified 2001

Masters of Engineering, University of Calgary, 1995

B. Sc., Mechanical Engineering, University of Waterloo, 1984

Introduction

Pathfinder LLC

International Project Management Consulting Firm

Established in 1975, executed over 3,750 Chemical Process Industry project Assignments representing over $575B of Capital Project Investment

Focused on assisting owner organizations in executing capital project more efficiently/effectively

Has supported $75B worth of Canadian capital project investment since the mid 1990s

Has executed over 60,000 people hours in region on various consulting & training assignments

Background

EPC Roundtable Background

PMI- SAC Sponsors EPC Roundtable (meets face to face 2 times a year).

Six sessions held from 2010 to 2013

Forum for open discussions about methods to improve outcomes of Capital Projects

Participation from Owners, Engineering Contractors, Construction Contractors, Academics

May 2013 EPC Roundtable Session

May, 2013 – PMI SAC EPC Roundtable special session to address topic of:

Integrated Scheduling for Large Capital Projects

25 industry experts participated in open discussion

Key findings are best practices that can be applied within Alberta’s Oil & Gas Industry

Roundtable Observations on Schedule

Members concluded: It is essential to have a resource-loaded, integrated schedule that is maintained throughout life of project

Needed as communication tool to coordinate activities of Construction and Engineering contractors, Owner stakeholders and core project team members

Failure to do so places major projects at risk: Failure in terms of schedule and cost objectives

Increased likelihood of claims/disputes between parties

Best Practices for Integrated Scheduling

Sched-Ache

Every Scheduler I hired needed retraining from scratch. Our project team needs a scheduler that

hits the ground running!

Practice 1 - Develop Competent Resources

Some Alberta projects currently lack competent resources – particularly schedulers and planners

Must develop competency through formal training, on-the-job mentoring and practical experience, Communities of Practice

Present career as a viable/interesting option, so best and brightest gravitate to profession

Practice 1 - Develop Competent Resources

Scheduling resources must know more than just how to use software

Should experience “tour of duty” – exposure to construction sites, engineering shops, and other activities

Assists in transition from scheduling role to planning role

AACE International Recommended Practice (Non 14R-90) – Responsibility and Required Skills for a Project Planning and Scheduling Professional

Sched-Ache

Our project has five different schedules being updated by different companies at different times. Who is in control of the Master Schedule?

Practice 2 - Follow a Realistic Scheduling Plan

Use a Schedule Plan that defines:

Roles, responsibilities of the schedulers/planners

Activity ID coding

Structure of the schedule

Software to be used to develop and maintain schedule

Practice 2 - Follow a Realistic Scheduling Plan

For Scheduling Plan to be followed during Execution, contracts must encourage the ‘right’ behavior

Have a budgeted activity included in contract for developing a proper resource and cost loaded schedule

If contractor fails to produce proper schedule – funds can be withheld

Like other “deliverables”, contractor’s schedule must follow specs defined in contract

Sched-Ache

Our Project Director approved a baseline schedule that the Project Team does not understand. It’s missing

critical activities that are needed to deliver the agreed to scope. There are activities that are out of sequence

and have incorrect durations!

Practice 3 -Perform Detailed Schedule Reviews

During schedule development, hold Interactive Planning Workshops with project team, key stakeholders

Document key points of discussion, agreements, information requirements, action items and responsible parties

Focus on understanding risks/opportunities that influence schedule

Use Independent 3rd party schedule reviews at key points in project lifecycle

‘Cold Eye’ reviews – identify risks and improve schedule quality

Example - Prior to issuing a Request for Proposal for a Construction Contract, the Owner engaged a construction consultant to review a baseline schedule

Practice 3 - Perform Detailed Schedule Reviews

Sched-Ache

We hired an Engineering Consultant to develop a schedule for the overall project. When we started work we realized there were activities done by the

Owner that were missed! Our project quickly fell off the rails!

Practice 4 - Involve Stakeholders During Schedule Development

Owner organizations must invest time and resources to develop schedule

Other participants should not perform this task on Owner’s behalf.

Only the Owner has perspective of all activities and potential impacts on schedule and business/project goals

Sched-Ache

Our Project is in Construction. When we integrate all the subordinate schedules into the Master Schedule, we are finding major inconsistencies and flaws. The

subordinate schedules have not been updated correctly with actual progress.

Garbage In = Garbage Out!

Practice 5 - Integrate Subordinate Schedules During Execution

Flawed “subordinate” schedules result in a flawed Master Schedule

Root causes of failed schedule integration?

Inexperienced personnel

“Crunched” time allotment

Insufficient and/or inaccurate information on which to base schedule(s) and schedule forecasts

Practice 5 - Integrate Subordinate Schedules During Execution

Practice 5a – Quality Check Subordinate Schedules

Rigorous quality control can identify flaws and correct them

Checklists to assess schedule quality can identify:

Incomplete logic

Inappropriate constraints

Incomplete use of relationships

Lack of resource loading

Practice 5 - Integrate Subordinate Schedules During Execution

Practice 5a – Quality Check Subordinate Schedules

Foster a project environment that allows collaboration between owner & contractor resources

When practical, co-locate Owner & Contractor schedulers

Include detailed schedule update requirements in contract – helps to clarify method to be used

Sched-Ache

Our Project Team developed a Preliminary Schedule during FEL-1. We set the expectation to the

Stakeholders for an In Service date. The subsequent schedules we issued did not alter this expectation although we showed slippage. What can we do to

communicate the schedule next project so that there are no misunderstandings?

Practice 6 - Educate Stakeholders on Scheduling Practices

Creating awareness within our stakeholders of the scheduling practices

Carefully/consistently communicate to stakeholders, so they understand uncertainties of published schedule

Communicate the of concept of Schedule Reserve for the “known unknowns” that can impact schedule.

Practice 6 - Educate Stakeholders on Scheduling Practices

Use Probabilistic Scheduling to communicate the schedule to stakeholders

“Our Monte Carlo technique indicates we have 50% chance of meeting April In Service; 70% chance of meeting July.”

Use a Change Log during FEL to trace schedule changes to scope changes

Schedule changes can be traced to:

Scope additions during project development (FEL)

More detailed understanding of schedule constraints as project progresses though planning. (Ex. - Construction Windows changed by Environmental Constraints)

Benefits of Best Practices for Scheduling

Benefits of Best Practices for Scheduling

In the opinion of EPC Roundtable members, adoption of these Scheduling Best Practices can:

Improve coordination and reduce conflicts between owners, contractors & stakeholders.

Improve predictability of project in-service dates.

Improve ability to forecast resource constraints through resource-loaded schedules.

Better decisions by Project Management to steer the project to the best possible outcome.

Next EPC Roundtable

May 2014 in Calgary

Focused Session on Best Practices for Project Development

FEL 1 and 2 activities in Owner Organizations

Invitees PMs

Business Development

Project Controls

Engineering

Functional Groups – Regulatory, Environment, etc.

Question & Answer

Contact Information

Scott Diehl PFI Project Consultants Canada

Suite 477-918-16 Ave NW

Calgary, Alberta T2M 0K3

T - (403) 874 - 6196

F - (403) 775 - 4166

consulting@pathfinderinc.com

www.pathfinderinc.com

Calgary Cherry Hill Houston Mexico City